COIDA and SHA Risk Specialists work together to protect all employees

In July 2022, a Notice amendment to the Compensation for Occupational Injuries and Diseases Act (COIDA) was introduced into law that impacts every employer in South Africa, including those who engage the services of domestic workers and gardeners.

Under this Notice, the Compensation Fund Commissioner sought to provide a regulated system of “no fault” compensation for injury or illness as a result of an individual’s occupation, and loss-of-income relief to an individual or their family, as well as claims for ‘reasonable medical expenses’.

Under the Act it is a criminal offence for anyone who has not registered under COIDA, and, confirms Dave Honeyman, head of Accident and Health at SHA (a division of Santam), “this means that the 46% of South African companies (some 200 000) that have not registered, and likely millions of domestic worker employers, are now subject to a penalty or jail term.

“Any employer that thinks they can fly under the radar of this Act is mistaken. The Department of Labour has recently engaged additional inspectors who will be visiting businesses and homes, inclusive of estates, to check their registration status.”

Honeyman makes the point that many may be wary of COIDA but they have no reason to be. “It’s good legislation because it addresses the historic unequal position that workers, particularly domestic staff and gardeners, found themselves in when an employer denied them any form of compensation if they became critically ill, were injured or disabled, or died, as a result of their occupation.

“Most of these workers have no means of income other than their current employment, and may even be the main breadwinner in their family. Worse is that it is the family who will be impacted when that income is no longer being generated.

Honeyman explains that in these circumstances employers will, on average, pay up to three months of salary, but under COIDA, income is protected up to 75% to a maximum claim of R529 264 per year “It is also relatively inexpensive at between two and three percent of the employee’s salary. This is a relief for claimants, but it can take up to a year for the claim to be verified.”

This one-year gap could literally starve a family, which doesn’t sit well with Honeyman, although he stands firm on COIDA’s value. Yet there is no way around proving a claim other than an investigation, which may be necessary to show the injured or dead were not culpable.

“It got us thinking that even if a person was not at a workplace and suffered an accident or injury that caused disability or death, the extended family would still be financially compromised.”

This is why SHA introduced the Employee Injury Assist policy. “This provides shortfall cover that will pay within 48 hours on a health or accident event, even if such an event occurs outside of the workplace. It is, however, conditional on being registered with the Compensation Commissioner, which SHA undertakes to do on our client’s behalf, when they take out the policy,” says Honeyman.

The Employee Injury Assist policy is also far-reaching in its benefits for not only does it bridge the potential one-year COID claim payout time gap, it offers additional benefits, such as facilitating a SHA initiated 24-hour, seven-days-a-week ambulance request, as well as an pre-accredited hospital admittance accompanied by COID forms. SHA will also monitor COID claims until the end of the claim process.

SHA has also appointed itself as custodians of COID because “there just isn’t enough understanding about it,” says Honeyman. “We train health and safety officers, and more importantly brokers. With our direct involvement we are seeing a 95% success rate for brokers signing up new policyholders.” This is not surprising given that SHA has a track record as the largest contributor to accident and health claims in South Africa.

“Throughout this innovation we have also had a policy count growth of 25% year-on-year for the past two years. Registration for COID is a simple process. Our existing clients can simply add it onto their existing SHA policies, and new clients can do it all online via SHA or face-to-face. “We will hold your hand right through the process,” says Honeyman.

Brought to you by SHA Risk Specialists, a division of Santam Insurance Company.

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